GUANNONG SHARE(SH:600251)2014-04-10 16:00Financial Performance - The company achieved a revenue of CNY 1,279,254,551.53 in 2013, representing a year-on-year growth of 19.37% compared to CNY 1,071,649,556.41 in 2012[23]. - The net profit attributable to shareholders reached CNY 297,156,396.81, an increase of 19.26% from CNY 249,166,258.06 in the previous year[23]. - The company reported a basic earnings per share of CNY 0.82, an increase of 18.84% from CNY 0.69 in 2012[23]. - The company achieved a sales revenue of 1.279 billion yuan in 2013, exceeding the planned 1 billion yuan by 27.9%[32]. - Net profit for 2013 was 297 million yuan, surpassing the planned 200 million yuan by 48.5%[32]. - The company reported a 36.94% decrease in material costs for sugar production due to lower raw material prices and reduced production volume[36]. - The revenue from the sugar industry decreased by 22.93% to CNY 252.88 million, with a gross margin decline of 3.58 percentage points attributed to falling sugar prices[43]. - The revenue from cotton processing increased by 145.05% to CNY 762.78 million, driven by the acquisition of three companies and improved sales performance[43]. Cash Flow and Investments - The net cash flow from operating activities was CNY 18,181,711.44, down 87.82% from CNY 149,296,448.58 in 2012[23]. - The company’s investment activities generated a net cash flow of CNY 237,580,830.06, an increase of 44.03% compared to CNY 164,950,596.91 in 2012[30]. - The cash flow from investment activities for the current year was CNY 237,580,830.06, an increase from CNY 164,950,596.91 in the previous year[41]. - The company reported a 79.43% decrease in tax refunds received, totaling CNY 5,513,586.26, primarily due to reduced export tax rebates[41]. Assets and Liabilities - The company's total assets at the end of 2013 were CNY 2,735,095,824.09, a decrease of 2.88% from CNY 2,816,279,955.80 in 2012[23]. - The accounts receivable increased by 241.93% to CNY 129,391,450.90, reflecting uncollected payments for cotton[47]. - The company's total liabilities decreased from CNY 1,629,514,162.21 to CNY 1,331,601,683.66, a reduction of about 18.25%[154]. - Current liabilities totaled CNY 1,245,283,682.62 at year-end, down from CNY 1,351,326,160.66, representing a decrease of approximately 7.85%[154]. - Shareholders' equity increased from CNY 1,186,765,793.59 to CNY 1,403,494,140.43, an increase of about 18.36%[154]. Dividend Policy - The company plans to distribute a cash dividend of 2.5 RMB per 10 shares, totaling 90,525,000 RMB based on the total share capital of 362,100,000 shares as of the end of 2013[6]. - For the 2013 fiscal year, the proposed cash dividend is RMB 90,525,000, equating to RMB 2.5 per 10 shares, representing 30.46% of the net profit attributable to shareholders[81][84]. - The company has established a profit distribution policy that ensures at least 10% of the annual distributable profit is distributed as cash dividends, provided that the company is profitable and cash flow is sufficient[79]. - Over the past three years, the company has distributed a total of RMB 220,881,000 in cash dividends, which is 31.16% of the average annual distributable profit during that period[82]. Corporate Governance - The company has received a standard unqualified audit report from Zhongshen Huayin Wuzhou Accounting Firm[6]. - The company has maintained independence from its controlling shareholder, ensuring no interference in decision-making and operations[130]. - The company has implemented a strict information disclosure policy, ensuring transparency and compliance with legal regulations[130]. - The board of directors consists of 9 members, including 3 independent directors, complying with legal requirements[130]. - The supervisory board has 5 members, including 2 employee supervisors, and has conducted 9 meetings during the reporting period[130]. Strategic Focus and Future Outlook - The company’s strategy focuses on strengthening management, adjusting structure, promoting integration, and enhancing efficiency to drive growth[28]. - The company aims to enhance its deep processing of agricultural products, focusing on sugar and tomato products, and expand its product range including ice sugar and tomato paste[69]. - The company expects 2014 revenue to exceed 1 billion CNY, with net profit projected between 160 million to 180 million CNY[68]. - The company anticipates a decline in net profit due to falling cotton prices and sugar prices impacting overall revenue[68]. - The company aims to strengthen its position as a key player in agricultural industrialization, leveraging Xinjiang's agricultural resources[67]. Risks and Challenges - The company has outlined various risks including policy risk, market risk, raw material price fluctuation risk, and financial risk in its report[12]. - The sugar industry faces challenges, with prices expected to stabilize after a prolonged decline since August 2011[61]. - The company faces risks including low market share and brand influence, as well as challenges in product design and marketing channels[73]. - The sugar industry is expected to face severe challenges in 2014 due to declining sugar prices, prompting the company to develop new products and extend its industrial chain[74]. Research and Development - The company’s research and development expenses rose by 32.94% to CNY 137,002.51 from CNY 103,052.08 in 2012[30]. - The company has a research and development team of 35 people, focusing on product innovation and technology improvements[51]. - The technology center has advanced equipment for agricultural product analysis and research, enhancing its R&D capabilities[122]. Employee and Management - The total remuneration for the chairman was 1.05 million RMB before tax, while the total remuneration for the president was 257,700 RMB[114]. - The company has a total of 853 employees, with 63 in the parent company and 790 in major subsidiaries[123]. - A total of 58 training sessions were conducted in 2013, with 957 participants, aimed at enhancing employee skills and knowledge[125]. - The employee compensation structure includes basic salary, position salary, performance salary, and year-end bonuses[123].